Stage Report Template - English

FINNISH STANDARD FOR SUSTAINABLE EXPLORATION

Introduction

The Finnish Network for Sustainable Mining is a cooperation forum for mining and exploration companies as well as interest groups of the sector. The network aims to share information and experiences and develop more responsible mining and exploration practices in Finland.

The companies that have committed to the Finnish Standard for Sustainable Exploration prepared in 2016 and updated between 2018 and 2020 adhere to operating principles that are sustainable in terms of environmental, social and economic performance. Sustainable exploration covers the entire lifecycle of exploration from the planning to after-care. The standard for sustainable exploration provides companies with concrete instructions for sustainable operations at each stage of exploration. The Standard is also used to assess performance and verify member companies’ commitment to the common ground rules.

The Finnish Standard for Sustainable Exploration consists of common operating principles and three assessment tools which cover the entire lifecycle of exploration stage-by-stage.

Guiding principles

The Finnish Standard for Sustainable Exploration includes guiding principles that the companies committed to the standard for sustainable exploration follow at all stages of exploration. The guiding principles of The Finnish Standard for Sustainable Exploration are listed below.

1. The operations of the companies are transparent.

2. The companies will adhere to best practices in exploration and commit to the continuous improvement of their operations.

3. The companies will minimise any negative impacts of their operations on local communities, the environment and biodiversity.

4. The companies will respect the surrounding community and its culture and ways of life.

5. The companies will engage in active dialogue with their communities of interest and involve these in the development of the principles for sustainable exploration.

6. The companies will not jeopardise the health and safety of their employees or local communities.

7. The companies will complete any after-care measures of their exploration activities responsibly.

Assessment tools

Exploration companies can assess, monitor and improve their performance by using three assessment tools. The assessment tools include entities related to the community relationships, environment, and safety.

Community relationships

The companies committed to the Finnish Standard for Sustainable Exploration will map and identify any social, economic, environmental and cultural impacts of their operations on local communities. The companies will adhere to the principles of open communications and promote the opportunities of communities of interest (COis) to participate in the preparation, development and application of any company practices so that they take into account the needs of the communities of interests, too. In the Sámi Homeland and the reindeer herding area, the special characteristics and rights of these communities of interest will be considered.

The companies complying with the Finnish Standard for Sustainable Exploration commit to engaging with communities of interest in accordance with the following principles:

1.The companies will identify the key COIs of their operations and encourage COI representatives to engage in dialogue and participate in issues of concern to them. The companies will assess the impacts of planned operations on various COIs and identify their expectations and needs.

2.The companies will apply the good practices described in the stakeholder engagement toolbox to enhance interaction between the company and COIs.

3.Ongoing, constructive and genuine dialogue aiming at cooperation will be maintained with the local community. The companies commit to promoting the identification of social and environmental impacts through engagement with COIs and to actively seeking and implementing measures to avoid and minimise any adverse impacts.

4.The principles of openness and transparency will be adhered to in operations. From the preparation stage of exploration, the companies will provide information on their operations, impacts and community relationship activities openly and in an understandable form. COIs will be provided with information on the activities and consulted actively and in a timely manner. Sufficient time will be built into consultation processes to allow for the meaningful review of proposals and materials by COIs.

5.Community relationships performance relative to targets will be reported publicly.

6.The companies will collect feedback from their COIs in order to develop their operations and community relationship activities. Any concerns raised by COIs will be responded to, and efforts will be made to seek solutions to the causes of the concerns to satisfy the concerns of all parties in an acceptable way. Feedback will be actively monitored and responded to, and it will provide direction for operations affecting the companies’ COIs and community relationship activities. The companies will develop feedback systems to meet the needs of various COIs.

7.The companies will operate in such a way that they will not weaken the opportunities of the Sámi, as an indigenous population, to exercise their right to maintain and develop their culture and practise their traditional livelihoods. In addition, the Akwé: Kon Guidelines are complied with in the Sámi Kon guidelines.

8.The companies will provide COI engagement training for their employees and subcontractors.

9.At the after-care stage of exploration, the companies will notify COIs of the termination of the exploration activities and their results, and any further after-care measures.

Environment

The companies committed to the Finnish Standard for Sustainable Exploration will comply with such practices and methods that ensure efficient management of environmental matters and the conservation of biodiversity throughout all stages of the exploration project life cycle. The companies will operate at least in accordance with the No Net Loss principle and seek to operate in accordance with the Net Positive Impact principle.

The companies committed to the Standard for Sustainable Exploration follow the following principles in their operation:

1.Recognising that Natura areas, legally-designated nature reserves, wilderness reserves, hiking areas and valuable landscape areas as well as other areas and sites that are valuable in terms of nature conservation can contribute to biodiversity conservation, the companies will comply with the relevant conditions and requirements set in national legislation.

2.Communities of Interest will be informed of any plans and measures affecting the environment, and they will be consulted and considered. Exploration activities will also consider the conservation of Sámi traditional knowledge and practices.

3.The companies will develop policies and practices by:

a)agreeing to a commitment to the management of environmental matters, which is consistent with the intent of this Framework and governs the operations of the company.

b)mapping and paying attention to significant biodiversity aspects within the area.

c)developing a management system for environmental matters.

d)developing an area-specific action plan to secure the conservation of biodiversity and species listed in the EU Habitats and Bird Directives in the area as well as interaction with communities of interest in the area.

4.Employees of the companies and their subcontractors are trained and educated to take environmental matters into account at each stage of exploration.

5.The companies will act in accordance with their plans and management systems and monitor progress towards the targets set.

6.The companies are committed to openness and transparency and public reporting on issues related to the management of environmental matters.

7.No exploration operations will be carried out in World Heritage sites or their buffer zones, strict nature reserves or national parks. The companies will ensure that the above-mentioned areas will not be affected by their planned operations.

8.No exploration can be carried out in Natura areas, the neighbouring areas affecting them, or other legally-designated nature reserves unless legal obligations are met and any negative impacts on nature are compensated for in full, in accordance with the No Net Loss/Net Positive Impact principle.

9.After the termination of exploration activities, the companies will restore the area to as natural state as possible.

Safety

The companies complying with the Finnish Standard for Sustainable Exploration aim to ensure that the companies’ and their subcontractors’ employees can return home safe and sound after every working day. The companies will actively promote and encourage the health and wellness of their employees both during work and leisure time.

The operations of the companies will cause no harm to the health or safety of other parties operating in the area or visiting the area of operations. Related practices will be developed in cooperation with communities of interest.

The companies will ensure the safety of exploration areas even after the termination of their exploration activities. Based on a safety assessment, the companies will define measures to remove any risk factors caused by their exploration activities. The companies will provide communities of interest with the opportunity to participate in the final inspection of the area.

The companies complying with the Finnish Standard for Sustainable Exploration will develop risk assessment and management to be able to respond to and prevent various incidents and minimise any impacts. Risk management will be developed, assessed and tested at corporate and local level.

The ultimate goal of the companies complying with the Finnish Standard for Sustainable Exploration is zero accidents. Progress towards this goal will be supported by the following measures:

1.The companies will develop a health and safety policy, authorised by the company’s senior management. Training will be provided for the companies’ staff to ensure that they act in accordance with the policy. The minimum requirements are set in legislation. The companies will also be responsible for the health and safety of their subcontractors.

2.Health and safety responsibilities as well as the persons responsible will be clearly defined at all levels of the organisation.

3.The companies will have a health and safety induction programme in place. The programme will cover the companies’ and their service providers’ employees. The induction programme helps the companies to ensure that employees are competent in safe working practices and are able to identify hazards and prevent incidents at work.

4.In addition, the induction programme encourages employees to report on safety and safety-related issues regularly. The results of such reporting will be used in the continuous improvement of health and safety practices and corporate business operations, as appropriate.

5.The companies will have a documented health and safety management system in place, covering the companies’ and their service providers’ employees. Integral parts of the management system include hazard identification, risk assessment and workplace inspections, which help to monitor progress towards targets on a regular basis.

6.The companies will openly report on their health and safety operating principles, their targets and performance.

The companies complying with the Finnish Standard for Sustainable Exploration will prepare a risk management plan, which describes actions to be taken in exceptional situations at corporate and local level:

1.The plan is based on the identification and assessment of risks associated with the exploration activities.

2.The plan contains community of interest -specific guidelines and procedures for different types of exceptional situations. If operations are carried out in the reindeer herding area, the plan also describes a protocol for guiding local residents, reindeer herders and reindeer away from the danger area in the event of an exceptional situation. The plan will be developed in cooperation with communities of interest.

3.The plan includes procedures for the consideration of the environment in an exceptional situation. As part of such procedures, the authority responsible for the preservation of the environment will be contacted as soon as possible.

4.The plan defines the roles, responsibilities and accountabilities of management and risk management team members.

5.The plan includes guidelines and contact details related to communications during exceptional situations.

6.The plan will be regularly reviewed and updated at corporate and local level.

7.In accidents or hazardous incidents threatening human lives, health, property or the environment, the rescue services are responsible for the organisation of emergency operations. The companies will ensure the competence of their employees responsible for risk management by providing training and organising regular risk management exercises. The exercises will be organised in cooperation with key communities if interest, such as the regional rescue services department. The roles and responsibilities of the Risk Management Team and the rescue services in a crisis can thus be considered. Communications and notification systems will also be tested during the exercises. The risk management plan will be further developed on the basis of the exercises.

Self-assessment

The sustainability of exploration is assessed with the help of self-assessment of The Standard for Sustainable Exploration. The companies committed to the Standard for Sustainable Exploration carry out the self- assessment annually. The purpose of self-assessment is to direct companies in the planning and implementation of entities related to sustainable exploration.

Self-assessment of The Standard for Sustainable Exploration acts as a good tool for exploration companies operating in Finland, in developing sustainability, but also as a guide in the operations of companies starting in Finland. The result of self-assessment gives a concrete evaluation of the sustainability of operations, and instructs towards development of operations in the various subareas of exploration sustainability.

In self-assessment, an exploration company assesses the sustainability of the planning and implementation of exploration at the different stages of exploration (profiling, reservation, exploration, and exit) by means of three assessment tools (community relationships, environment, safety). The entity of exploration is divided into four stages, each of which includes characteristic features for the different stages of exploration. A company’s profiling includes reviews that describe, for example, the company’s operating principles, values, and communications. The reservation stage comprises a concrete start-up of exploration from planning of exploration all the way to the first operations in the field. The exploration phase includes actual field exploration and related entities, the responsibility of which is assessed using assessment tools. At the exit stage of exploration, the sustainability and implementation of reporting and after-care measures related to the ending of exploration are described and assessed.

Self-assessment according to The Standard for Sustainable Exploration is carried out by answering questions posed at various stages and levels of exploration. The sustainability level of exploration is determined by the answered questions. Only one level can be selected for each assessment tool, and it can be chosen only if all criteria for that level and all preceding levels have been met.

For each assessment tool, five levels of performance have been determined (C-B-A-AA-AAA). The sustainability of exploration, that is, the level of performance, is defined on the basis of the assessment criteria. The assessor must evaluate whether the performance of the company meets the assessment criteria for the performance indicators. All companies are expected to comply with the legal and government requirements described in the self-assessment at level C. Companies that have achieved the level of self-assessment B-AAA have developed their operations and sustainability above the requirements of legislation and the authorities.

It is recommended that the assessment include interviews, discussions and document reviews. Representatives of the management of the exploration company as well as assisting and specialist personnel must take part in the assessment.

Structure of self-assessment of the exploration system

verifying the results

The results of the self-assessment of The Standard for Sustainable Exploration are verified every three years. Only those who have completed the qualification training and have been approved by the Network can act as verifiers. The verification process has been created to ensure consistent, accurate and transparent self-assessment reporting by the companies committed to The Standard for Sustainable Exploration.

The verification process ensures that the level reported by the company is consistent with the conclusion by the verifier. Verification is based on established auditing practices, such as interviews of relevant persons and checking documents. The verifier, at their discretion, may talk to local communities of interest.

Assessment tools of the Standard for Sustainable Exploration must be used in verification. The Verification report must include at least a statement that confirm the verified results. The verifier must report why a criterion is defined for the level in question, in particular if the verified level differs from the level of the customer’s self-assessment. The customer is also provided with the assessment tools with their comments.

FINNISH STANDARD FOR SUSTAINABLE EXPLORATION